HRA 09/04/2014
September 4, 2014
HRA Meeting
Regular Meeting Agenda
7:00 p.m.
Call to order
Roll call.
Action Items
1. Approval of expenditures
2. Approval of August 7, 2014 Meeting Minutes
3. Resolution for Approval of 2014 Tax Levy for Taxes Payable in 2015
4. Approval of Home and Garden Show Administrative Contract
5. Approval of Amendment to DEED Grant Contract - Northern Stacks
6. Reinstatement of and First Amendment to Commercial Industrial Purchase
Agreement - 7011 University Avenue NE
Informational Items
1. Housing Loan Program Update
Adjournment
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HRA ACTION ITEM
SEPTEMBER 4, 2014
DATE:
August 18, 2014
TO:
Wally Wysopal, City Manager
FROM:
Paul Bolin, Assistant Director of HRA
Darin Nelson, Finance Director
SUBJECT:
Consider HRA Tax Levy for Taxes Payable in 2015
Since 1996, the HRA has utilized a tax levy to help support its housing rehabilitation
programs. The levy is equal to .0185% of the taxable market value of all real estate and
personal property. The tax levy will allow the Authority to collect approximately
$434,000, based on a city-wide tax market value of $2,345,374,800. In terms of the
impact on taxpayers, the levy would cost $27.75 per year for a home valued at $150,000
and $185.00 per year for a commercial property valued at $1,000,000. The revenues
raised by the levy are directed towards ongoing and future redevelopment priorities.
State Statutes require the consent of the City Council, prior to the tax levy becoming
th
effective. The City Council will act on this item on September 8. As a final note, the
HRA tax levy will be certified to the County Auditor on or before September 12, 2014.
Recommendation
Staff recommends that the Authority approve the attached resolution at their regular
meeting on September 4, 2014.
Attachment
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HRA RESOLUTION NO. 2014 - ___
RESOLUTION ADOPTING A 2014 TAX LEVY COLLECTIBLE IN 2015
BE IT RESOLVED
by the Board of Commissioners (the "Commissioners") of the Housing
and Redevelopment Authority in and for the City of Fridley, Minnesota (the "Authority"), as
follows:
Section 1. Recitals.
1.01. The Authority is authorized by Minnesota Statutes Section 469.033 to adopt a levy on
all taxable property within its area of operation, which is the City of Fridley, Minnesota
(the "City").
1.02. The Authority is authorized to use the amounts collected by the levy for the purposes of
Minnesota Statutes Sections 469.001 to 469.047 (the "General Levy").
Section 2. Findings.
2.01. The Authority hereby finds that it is necessary and in the best interests of the City and
the Authority to adopt the General Levy to provide funds necessary to accomplish the
goals of the Authority.
Section 3. Adoption of General Levy.
3.01. The following sums of money are hereby levied for the current year, collectible in 2015,
upon the taxable property of the City for the purposes of the General Levy described in
Section 1.02 above:
Total General Levy: .0185% of Taxable Market Value
Amount: Maximum Allowed by Law
Page 2 Resolution No. ___________________
Section 4. Report to City and Filing of Levies.
4.01. The Executive Director of the Authority is hereby instructed to transmit a certified copy
of this Resolution to the City Council for its consent to the General Levy.
4.02. After the City Council has consented by resolution to the General Levy, the Executive
Director of the Authority is hereby instructed to transmit a certified copy of this
Resolution to the County Auditor of Anoka County, Minnesota.
PASSED AND ADOPTED BY THE HOUSING AND REDEVELOPMENT AUTHORITY
IN AND FOR THE CITY OF FRIDLEY, MINNESOTA THIS 4thDAY OF SEPTEMBER,
2014.
LAWRENCE R. COMMERS
- CHAIRPERSON
ATTEST:
WALTER T. WYSOPAL - HRA EXECUTIVE DIRECTOR
ACTION ITEM
HRA MEETING OF SEPTEMBER 4, 2014
Date: August 28, 2014
To: Wally Wysopal, Executive Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Home & Garden Show Admin. Contract __________________
Background
The Fridley HRA has been the fiscal agent for the Home & Garden Show since its
inception 17 years ago. The Cities of Mounds View and Blaine are partners in
sponsoring the show. The revenues from booth rentals have typically paid for all of the
expenses associated with the show.
Since 2005, the group has contracted with Marsha Wagner (dba- Castle Visions) to
perform the administrative tasks necessary for producing the Show. Marsha has
become a valuable asset to those involved with the show.
The Home & Garden Show planning group would again like to contract with Marsha
Wagner for the 2015
the show generates adequate revenue to cover the cost of contracting with Marsha.
Staff Recommendation
Staff recommends that the HRA approve the contract between the HRA and Marsha
Wagner/Castle Visions to provide assistance with the 2015 Home and Garden Show,
as detailed in the attached contract.
ACTION ITEM
HRA MEETING OF SEPTEMBER 4, 2014
DATE: August 28, 2014
TO: Wally Wysopal, City Manager
FROM: Paul Bolin, Assistant Executive HRA Director
SUBJECT: MN DEED Contamination Cleanup Grant Amendment
INTRODUCTION
Earlier this year, Hyde Development and the Authority, received a grant through
the Minnesota Department of Employment and Economic Development's (DEED)
"Contamination Cleanup" grant program. As the project is now underway Hyde
has requested that DEED allow the developer's cost to "cap" the soils
underneath buildings and other required areas to count as a local match.
Typically, DEED doesn't like developers using the capping expense as the local
match, because it is the last cleanup work done on the site. DEED's staff feels
confident enough in Hyde's ability to deliver, as promised, on the Northern Stacks
project that they have agreed to allow using the capping expense as the local
match.
The only change to the contract, is shown on the attached sheet. Simply, the
word "Cap" and the amount of "$2,250,000" is being added to the table of
"Project Costs" found in the original contract. The cost of the capping will exceed
the 25% of costs required for the local match.
RECOMMENDATION
Staff recommends approval of the attached amendment to DEED's
Contamination Cleanup Grant Contract.
ACTION ITEM
HRA MEETING OF SEPTEMBER 4, 2014
Date: August 28, 2014
To: Wally Wysopal, City Manager / Executive HRA Director
From: Paul Bolin, Asst. Executive HRA Director
Subject: Reinstatement of & First Amendment to Arena Purchase Agreement
As the Authority has moved towards the acquisition and demolition of the Columbia
Arena property, there have been some unanswered questions regarding the disposal of
the Freon used in the ice making equipment. A Phase I environmental study,
completed by the engineering firm of Carlson McCain, noted that the refrigeration
equipment was removed from the arena and it was possible that Freon may be found in
the soils and/or groundwater.
The age of the buildings, along with a lack of knowing that the refrigeration was properly
removed and Freon captured, led to hiring the engineering firm of Braun-Intertec to
complete a Phase II environmental study. The Phase II study involved Braun taking soil
and ground water samples, as well as soil vapor probes. The samples were all sent to
a testing lab and provided mixed results. The great news is that there was no traces of
Freon 22 in the soil or groundwater. The bad news is that there were traces found in
the soil vapor probe samples. (I have attached Braun's draft report for your review).
After reviewing the Phase II results with Braun, there were a number of questions that
need to be answered prior to closing on the property. In order to provide the time
needed to have our questions answered, we requested more time from the sellers. The
seller's attorney was not able to get in contact with his clients prior to the Authority
needing to send a Termination Notice out via courier. Because of the mortgages on the
property, the sellers need the banks consent to sign the attached "Reinstatement of
and First Amendment to Commercial Industrial Purchase Agreement" that puts the
original purchase agreement, with extended dates, back into play and provides the time
needed for the Authority to have the environmental questions fully answered.
Recommendation:
Provided the bank agrees to the extension, Staff recommends the Authority adopt the
attached, "Reinstatement of and First Amendment to Commercial Industrial Purchase
Agreement".
Fridley HRA
Housing Program Summary
Cover Page
September 4, 2014 HRA Meeting
ReportDescription
Loan Application Summary Loan application activity (e.g. mailed
out, in process, closed loans) for past
month and year-to-date.
Loan Origination Report Loan originations for past month and
year-to-date.
Remodeling Advisor Shows the number of field appointments
scheduled and completed for the
Remodeling Advisor Services
administered by Center for Energy and
Environment.
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